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FTC Warns Funeral Homes To Comply With Price Disclosure Rule After Undercover Phone Sweep
U.S. Federal Trade Commission
The U.S. Federal Trade Commission sent warning letters to dozens of funeral homes after an undercover phone sweep found many violated the Funeral Rule requiring the disclosure of accurate pricing information.
Throughout 2023, investigators with FTC regional offices and the agency’s Bureau of Consumer Protection placed undercover calls to more than 250 funeral homes across the country to request pricing information.
The Funeral Rule requires that funeral homes “tell persons who ask by telephone about the funeral providers offerings or prices any accurate information from [their] price lists…. and any other readily available information that reasonably answers the question[s].”
The agency found that 39 funeral homes called as part of the undercover phone sweep violated the rule on those calls.
On 38 of those calls, funeral homes either refused to answer questions about pricing at all or provided inconsistent pricing for identical services, the FTC said.
On one call, a funeral home falsely claimed that local health codes required remains to be embalmed if more than a certain number of people wanted to view the remains. Embalming is a method for preserving remains, often for viewing.
Most states do not require a body to be embalmed, and the few states that require embalming only do so in limited circumstances, such as if refrigeration is not available, the FTC said.
On another call, the funeral home promised to send a General Price List, which is required to include certain disclosures and prices for itemized services, but instead sent a list of package prices that did not meet the Funeral Rule’s requirements for a General Price List.
Warning letters sent to 39 funeral homes found to be in violation of the Funeral Rule reiterated requirements and requested prompt remedial action.
Failure to comply with the Funeral Rule can result in penalties of up to $51,744 per violation, the FTC said.
TMX contributed to this article.
